Missed inflation target, but acting early would have exerted heavy costs: RBI Das


PTI, Nov 2, 2022, 12:52 PM IST

RBI Governor Shaktikanta Das on Wednesday defended the Reserve Bank’s handling of the price situation, saying acting prematurely on inflation would have exerted a heavy cost on the economy and citizens.

Acknowledging that the inflation target has been missed, Das said the RBI decided to support the economy by not introducing a rate hike in face of a spike in inflation.

”We prevented a ‘complete collapse of the economy’ by keeping rates lower and stayed away from premature tightening,” Das said speaking at the annual FIBAC conference of bankers here.

Acting early would have exerted costs to the economy and the people, Das said.

He said the rate-setting Monetary Policy Committee (MPC) is meeting on Thursday to formulate a response to the government, but defended the RBI’s move to not make the letter, to be written to the government, public.

Not making the letter public does not compromise transparency, Das said, adding that nothing in the law gives him the authority, privilege and luxury of sharing privileged communication between the government and the central bank.

He said, the communication which will focus on what led to the consumer price inflation staying above the 6 per cent mark for three consecutive quarters, includes measures which the panel is mulling to take and by when will the price situation come into the 2-6 per cent band.

Amid the charged-up debate on rupee depreciation, Das asked everybody not to look at the situation in an emotional manner, asserting that the domestic currency has behaved in an orderly way.

In remarks, that come hours ahead of a review of monetary policy announcement in the US, Das said the US Fed Reserve cannot tighten endlessly and capital flows will eventually resume.

He said the launch of the Central Bank Digital Currency (CBDC) is a landmark moment in the history of currency in the country and will lead to a major transformation of the way business is done.

Retail part of the CBDC trial will be launched later this month, he said.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

Doting parents place QR code on son’s tomb to keep his memories alive

3D holographs at Bengaluru museum marries tech and art

PM Modi holds high-level review meeting on Covid situation

Excise policy: Manish Sisodia sent to 14-day judicial custody in money laundering case

India fast becoming big exporter of telecom technology: PM Modi

Congress indicates candidates list for Karnataka polls will be out in a day or two

Finance Minister Gahlot presents Rs 78,800-cr budget for 2023-24 in Delhi Assembly


Related Articles More

Unlike global economy, India would not slow down: RBI article

Windfall tax on diesel export hiked to Re 1 per litre

Amazon announces 9,000 job cuts

Adani says Mundra petchem work suspended as finances not tied-up yet

Asian stocks sink after Credit Suisse takeover

MUST WATCH

World’s Most endangered animals

Mount Everest Story with Sunil Nataraj part 3

Remembering Puneeth Rajkumar

THE INCREDIBLE MONKEY MAN KOTHI RAJ

11th National Level Dragon Boat Championship


Latest Additions

Doting parents place QR code on son’s tomb to keep his memories alive

3D holographs at Bengaluru museum marries tech and art

PM Modi holds high-level review meeting on Covid situation

Bilkis Bano case: SC agrees to constitute special bench to hear plea against remission to convicts

German group sues Facebook owner Meta over death threats

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.